hos pet steels limited

Welcome to Hospet Steels Limited A joint venture of M/s Kalyani and M/s Mukand

Post Ginigera - 583228, Dist Koppal, Karnataka.

Efforts on environmental aspects.

Main gate with lush green background

Full view of the Plant

Admin building

His Excellency, Sri. Veeren ShahGovernor of West Bengal, visited our factoryon 10th of July, 2004 along with Her Ladyship

and was received with great warmth.

Plantation in front of Admin building

Admin building, Scrap bay & boiler house

Greenery at south west water tank

A view of clean road with Greenery around & a “Parisara Vahini” vehicle

Clean roads with lush green road-divider,

environment slogan & ornamental trees

Royal Palm flourishing amidst clean environment

South side road bund. A view from SMS stores

South side road. A view from LDO tank

A beautiful arial view of south side road and associated buildings.(An Is-land of greenery amidst barren back-ground)

Close view of MBF-1

MBF-1 with land scape

Land scape by the side of Boiler house

Furcaria sp seedlings raised at our nursery

Forest seedlings kept ready for plantation. We distribute this saplings to near by villages

on World Environment day, June 5th of every year.

We are creating awareness of environment even among youngsters“ TEACH THEM YOUNG ”

Cassia, sp at bloom near Admin building

Coconut plantation by the side of RMS

A close view of Land-scaping by the side of SMS yard

A scene from Flag Hoisting Ceremony at HSL housing colony on 15th August 2006.

15th August

Hygienically maintained canteen at our plant

Well maintained play ground.Here we organise games & sports for local talents

Rescue team is ready to evacuate people from a gas prone area during a mock-drill

Mock-drill at MBF areaEvacuation of a casualty after first aid

Sri. Navneeth Mohan, Sr. Asst. Director of Factories & Boilers,Gulburga Div. addressing the gathering on the occasion of Mock-Drill

Periodical inspection of Fire-Fighting equipment by the Manager, Safety

Training on combating the fire by the security personal

The procedure to revive a person who has just had a heart attack being demonstrated on a mannequin by Dr. B.K. Sundar, a renowned cardiologist from Bellary

An event of GRISD, organised by HSL

A view of neat open cast mines at SIOM-Sandur, A source of Iron ore.Mined with conservation in view

Watering the roads to prevent dust while transportation of Iron ore-SIOM

Gully plug made to prevent soil erosion - SIOM

Plantation on hill slopes – SIOM.

Dignitaries observing the exhibits – GRISD-2005

TS 16949 – A symbol of our concern for Quality & care for our valuable customer

ISO 14001 – A symbol of our concern for environment

Our effort in participation at National level

Thank you for sparing your valuable time with us.

All Photos displayed here are the property of Hospet Steels Limited, Ginigera

Mr V.K.Goyal- Secretary.Central Boiler Board.

Mr T.G.Manjunath - Joint Director, Boiler Board, Karnataka

Mr K.Rengachari - Sr. Deputy General Manager, Quality Control,BHEL,Trichy.

MUKAND LTD

HOSPET STEELS

TO THE LARGEST INTEGRATED ALLOY STEEL PLANT

MUKAND LTD

⇒ Green field project conceived in the year 1995.

⇒ Strategic Alliance between “Mukand” & “Kalyani” groups to produce world class steel.

⇒ Both the groups are leaders in Alloy & Special Steels and their individual strengths are complementary for achieving management objectives.

⇒ Capacity : 4,00,000 MT /Annum to be shared in the ratio of their respective investments.

HOSPET STEELS

MUKAND LTD

HOSPET STEELSMilestones

ISO 9000-2000 Certification BY BVQI (Obtained on 8th Sept ,2001)

ISO 14001 Certification By BVQI ( Obtained in Nov.2003)

TS16949 Certification By BVQI (Target June 2004 )

TPM Kicked off (14th Aug,2003)

5’ S Launched on (8th Nov,2003) Implementation targeted by Nov-,2006.

MUKAND LTD

HOSPET STEELSQUALITY POLICYQUALITY POLICY

WE ARE COMMITTED TO IMPROVE MANUFACTURING

PROCESSES AND PRODUCTS ON CONTINUAL BASIS

THROUGH EFFECTIVE QUALITY MANAGEMENT

SYSTEMS FOR ACHIEVING CUSTOMER SATISFACTION

R.Sampath KumarDate : Jan 6th,2005 Chief Executive

MUKAND LTD

HOSPET STEELSENVIRONMENTAL POLICY

WE ARE COMMITTED TO MINIMIZE ON A CONTINUOUS BASIS, THEIMPACT OF OUR MANUFACTURING ACTIVITIES ON THE ENVIRONMENT BY:

CONTROLLING ALL POLLUTANTS WITHIN THE STANDARD LIMITS.

COMPLIANCE WITH APPLICABLE ENVIRONMENTAL LAWS & REGULATIONS.

MINIMISING PROCESS WASTE,PROMOTING ITS RECOVERY BY RECYCLING AND DISPOSAL OF WASTE MATERIALS.

DEVELOPING AND REHABILITATING WASTE DUMPS THROUGH AFFORESTATION AND LANDSCAPING.


MUKAND LTD

HOSPET STEELSTPM POLICY


MUKAND LTD

HOSPET STEELSSAFETY POLICY

We are committed to comply with Legal, Economic & Moral obligation towards

Safety & Health of employees through safe working practices for achieving organizational goals.

R.Sampath KumarDate : Aug 16, 2004 Chief Executive

MUKAND LTD

HOSPET STEELSTRAINING POLICY

WE FIRMLY BELIEVE THAT HUMAN RESOURCES ARE OUR MAIN

ASSETS IN ORDER TO ACHIEVE THE BEST POSSIBLE RESULTS,

TRAINING FOR EMPLOYEES IS A CONTINUOUS PROCESS

TO ACHIEVE IMPROVED STANDARDS OF PRODUCTION

TO THE BEST SATISFACTION OF CUSTOMERS.

R.Sampath KumarDate : Jan 12, 2005 Chief Executive

MUKAND LTD

KEY INFORMATIONKEY INFORMATIONHOSPET STEELS

⇒Land Area : 372 Acres.⇒Installed Capacity : 4,00,000 MT/Annum.⇒Total Man Power : 780.⇒Contract Demand : 22.1 MVA.⇒Avg. Energy Consumption : 11.0 MU/ Month⇒Avg. Electricity Bill : Rs 32 Million / Month⇒Water Consumption : 3000 m3/day.⇒Water Reservoir : 4.14 Lakh Cu M.⇒Oxygen Plant (Praxair) : 115 TPD.

MUKAND LTD

HOSPET STEELS

MAJOR FACILITIESMAJOR FACILITIES⇒ Mining Operation at

Subbarayanahalli Iron Ore Mines &Jambunathanahalli Iron Ore Mines of M/s Mysore Minerals Limited.

⇒ Mini Blast Furnace - 2 nos.⇒ Energy Optimizing Furnace - 40 MT.⇒ Ladle Furnace - 40 MT x 2 nos.⇒ Vacuum Degassing Unit - 40 MT.⇒ Bloom Caster - Two strands.⇒ Billet caster - Three strands.⇒ Blooming Mill.

Mining Mining --Subbarayanahalli Iron OreSubbarayanahalli Iron OreMUKAND LTD

HOSPET STEELS

⇒ Started in : Dec 1999.⇒ Area : 160 Hectares.⇒ Lease Period : 20 Years.⇒ Iron Ore Reserves : 17. 5 Million Tons.⇒ Calibrated ore Output : 50,000 MT/month ⇒ Size : 10-40 mm.⇒ Fe. Content : > 65%.⇒ Gangue Content : < 3%.

STAGE AT SUBBRARAYANAHALLI IRON ORE MINES

Mining Mining --Jambunathanahalli Iron OreJambunathanahalli Iron OreMUKAND LTD

HOSPET STEELS

⇒ Started in : Apr-2003.⇒ Area : 51.71 Hectares.⇒ Lease Period : 10 Years.⇒ Iron Ore Reserves : 7. 5 Million Tons.⇒ Calibrated ore Output : 14,000 MT/month⇒ Size : 10-40 mm.⇒ Fe. Content : > 65%.⇒ Gangue Content : < 3%.

MUKAND LTD

HOSPET STEELSMINI BLAST FURNACEMINI BLAST FURNACE

Technology : TKES/KTSNo. of MBF : 2 Nos.Commissioning : I June 1998 - II Apr 2000Working Volume : 250 m3Hearth Diameter : 4.20 mWorking Height : 16.4 mTop Pressure : 0.35 barMetallic Blast Preheater : 2 Nos, ( 800-900 o C)Blowers : 6 NosBlower Volume : 40000 Nm3 / hrGCP Capacity : 52000 Nm3 / hrPig Casting Machine : 2 Strands (80 MT/hr)Slag Granulation Facility :

MINI BLAST FURNACE VIEW

Mini Blast Furnace View

TRUCK TIPPLER AT GROUND HOPER INSTALLED TO SAVE WASTAGE DURING HANDLING

TAPPING AT MINI BLAST FURNACE

PIG CASTING M/c VIEW AT MINI BLAST FURNACE AREA

ENERGY OPTIMISING FURNACEENERGY OPTIMISING FURNACEMUKAND LTD

HOSPET STEELS

⇒ Technology - KTS / TKES.

⇒ Commissioning - Aug 1998.

⇒ Capacity of EOF - 40 MT.⇒ Shuttle Type Bottom change. ⇒ Water cooled roof & side walls. ⇒ Oxygen lancing through four tuyeres,

four atmospheric injectors & one supersonic lance.

⇒ Automatic lime and ferro alloy addition system.⇒ PLC process control.

LADLE REFINING FURNACELADLE REFINING FURNACEMUKAND LTD

HOSPET STEELS

⇒ No of LRF - 2 Nos.⇒ Technology - ABB.⇒ Commissioning - Aug 1998.⇒ Transformer Capacity - 10 MVA.⇒ Automatic lime & ferro-alloy feeding system.⇒ Optimal alloy calculation program.⇒ Argon Purging System.⇒ Four strand Core Wire feeding system.⇒ Heating rate 5 oC /min.⇒ Level 2 Automation.⇒ Oxygen Probe.

MUKAND LTD

HOSPET STEELS

VACUUM DEGASSINGVACUUM DEGASSING⇒Technology - ALD Germany.

⇒Commissioning - March 1999.

⇒Boiler Capacity - 14 Tons/hr.

⇒Vacuum System - 5 stage steam ejectors.

⇒Vacuum Level - 0.65 mbar.

⇒Suction Capacity - 200 Kgs/hr at 0.65 mbar

⇒Double alloying hoppers for trimming under vacuum.

⇒Level 2 Automation.

MUKAND LTD

HOSPET STEELS

BLOOM CASTERBLOOM CASTER

BLOOM CASTER

⇒Technology - Techint / Pomini.

⇒Commissioning - August 1998.

⇒No. of strands - 2

⇒Sections (mm) - 240X280, 160 , 200, 220 rounds.

⇒Multi Radius Machine - 10/18 m.

⇒Ladle Turret for quick change over.

⇒Auto Mould Level Control.

⇒Combi Electromagnetic Stirrer.

⇒Quality Tracking System.

⇒Automatic presetting of process parameters.

⇒Length Optimization.

⇒Synchronized Secondary Cooling System.

MUKAND LTD

HOSPET STEELS

BILLET CASTERBILLET CASTER⇒Technology - Techint / Pomini

⇒Commissioning - March 1999

⇒No. of strands - 3

⇒Sections - 120X120 , 160X160, 200x200 mm sq

⇒Multi radius Machine - 9/16 m

⇒Ladle Turret for quick change over

⇒Auto Mould Level Control

⇒Combi Electromagnetic Stirrer

⇒Quality Tracking System

⇒Automatic presetting of process parameters.

⇒Length Optimisation

⇒Synchronized Secondary Cooling System

MUKAND LTD

HOSPET STEELS

ROLLING MILLROLLING MILL⇒Technology - Danieli

⇒2 High Reversible Mill with 750 mm diameter rolls

⇒Maximum input section : 240X280 mm sq.

⇒High pressure descaler

⇒Slow cooling facility

⇒Bar straightening facility

⇒Magnetic particle inspection

⇒Rolled Bar SizeRounds : 80, 83, 90, 97.5, 100, 105, 115, 125, 130 mmRCS : 75, 90, 95, 100, 120,125 ,140,160 and 182mm sq.Flats : 150X100,160X70,180X80,160X140

⇒Bar Length : 6.0 meters

IRON ORE COKE LIMESTONE

MINI BLAST FURNACE (250M³ X 2 Nos.)

ENERGY OPTIMISING FURNACE40 T CAPACITY

IRON & STEELSCRAP

(15–30%)

FERRO ALLOYS

REFINING

FLUX ( LIME &

DOLOMITE )

O2 BLOWING

FERRO ALLOYS

REFINING

LF-1 40 T

LF-240 T

MUKAND

VACUUM DEGASSING

VD40/45 TCLOSED STREAM CASTING

COMPUTERISED PROCESS CONTROL

TRIMMING OF CHEMISTRYUNDER VACCUME

CLOSED STREAM CASTING

COMPUTERISEDPROCESS CONTROL

BLOOM CASTER10/18 m Radius

BILLET CASTER9/16 m Radius

ROLLING MILL750 mm, 2Hi

TESTING FACILITIESTESTING FACILITIES MUKAND LTD

HOSPET STEELS

STEEL MELT SHOP & ROLLING MILL⇒ Pneumatic sample carrier.⇒ Electron emission spectrometers (2 Nos).⇒ Hydrogen analyzer.⇒ ‘C’ & ‘S’ analyzer.⇒ Inverted Metallurgical Microscope.⇒ Ultrasonic testing machine.⇒ Universal testing machine.⇒ BHN & Rockwell hardness tester.⇒ Forging Hammer.⇒ Jominy hardenability.⇒ MPI sample testing facilities.⇒ Mobile spectrometer⇒Oxygen & Nitrogen Analyser

STEEL GRADES DEVELOPEDSTEEL GRADES DEVELOPEDMUKAND LTD

HOSPET STEELS

APPLICATION GRADESCOLD HEADING QUALITY

Low Carbon. SAE1010, VS14250.Low Carbon Boron Steel. 10B21, 15B21.19MnB4Medium Carbon Boron Steel. 15B41.Alloy Steel. SAE 4140.

FORGING QUALITYGears. SAE8620,8627,SCM 420,SAE4120Crown Wheel & Pinion. 20MnCr5, 16MnCr5,

EN353 ,EN 354Rear Axles. EN15A.Front Axles Beam. 1045(M),709M40(AL),SHAEM105(DANA),

40Cr4( C ) (TELCO)Crank Shaft quality. EN18, EN19, SAE 4140, 42CrMo4.Shock absorber shaft JIS S35 C, JIS S45 C, JIS S48 CSteering Knuckle SAE4135(Meritor),SAR440


HOSPET STEELS

APPLICATION GRADES

BALL BEARING STEELRaces SAE 52100, EN 31.

FREE CUTTING STEEL. EN1A , EN1A(Leaded)

SEMI FREE CUTTING STEEL. EN8M, SAE1141.

HIGH CARBON STEELHigh tensile wire rods/Needle wire 61/65, 66/70.

Low Relaxation Prestresed concrete. 78/82(V)

CATHODE BARS / LER ASTM A 36,ASTM A 663Gr.60,LER.


HOSPET STEELS

APPLICATION GRADESSPECIAL ELECTRODE QUALITY WR3

SPRING STEEL.Leaf Spring. 65Si7Helical Springs. 50CrV4,58CrV4,65Si7

SUP7, SUP9, SUP12VSAE 9254

SEAMLESS TUBES.Oil line Pipes. SAE1010, SAE1018, MSL–I/IA.Casing & Tubing Pipe SAE 4042, SAE1541, MSL-II,MSL-IV

AP15CTQ 125,BS3059 Gr.440,MSL7 & 8SAE1537(V).

HIGH TEMPERATURE BOILER SA210 Gr.A1,SA210 Gr.C,SA192,APPLICATIONS (For BHEL) SA106 Gr.C

MICRO ALLOYED STEEL C38+N2 for crank shaft.

SL NO CUSTOMER GRADES SUPPLIED

1 Indian Seamless Metal Tubes Ltd. SAE 1026

MSL IMSL IAMSL ICMSL IV

ASTM-A105SA 105

4 Echjay Industries Ltd. ASTM-A105

SA 105SA106GrCSA210GrCSA210GrA1

SA 192

IBR HEATS MADE FROM 21.11.2002 TO 31.01.2006

MMF 3

Bharat Heavy Electricals Ltd.

Maharastra Seamless Ltd. 2

5

MUKAND LTD

HOSPET STEELSPRODUCT DEVELOPMENT

FROM 2001-2005

Development of crank shaft quality grade with reduction ratio 1 : 4 for Chinese application.Development of crankshaft quality grade for heavy duty transportvehicle (2 grade 2CrMo).Development of micro-alloy crankshaft for Ford application.Development of front axle beam material for Daimler Chrysler, Meritor, Dana, Ashok Leyland & Telco application.Development of steel for gear for Caterpillar application.Development of Steering knuckle for Dana Corporation & Meritor application.Development of as cast seamless tube steel for high temperature boiler application. ( BHEL)

MUKAND LTD

HOSPET STEELSPRODUCT DEVELOPMENT

FROM 2001-2005

Development of as cast seamless tube steel for off shore drilling for ONGC / OCTL application.

Development of Ball bearing (SAE 52100) steel for SKF application.

Development of Low & Medium carbon Boron steel for CHQ application.

Development of alloy CHQ grade.

Development of steel for gear for Delphi automotive & GKN drive shafts.

Development of helical springs steel for all prestigious passenger car application.

Development of Leaded free cutting steel.

Development of steel for steering assembly application

MUKAND LTD

HOSPET STEELS

PRESTIGEOUS CUSTOMER APPROVALSPRESTIGEOUS CUSTOMER APPROVALS

CUSTOMER APPROVED IN

1 Bajaj Auto Ltd. 1999 July .2 Delphi Automotive 1999 September . 3 Sundaram Fastners Ltd. 1999 September .4 Motor Industries Co Ltd.(MICO) 1999 September .5 LML 1999 October .6 Kirloskar Oil Engines Ltd. 1999 October .7 Mahindra & Mahindra 1999 November .8 Bharat Forge Ltd 1999 November .9 GNA 1999 November .10 Tata Motors 2000 January .11 Automotive Axles 2000 January .12 Ashok Leyland 2000 February . 13 Shardlow (India) 2000 August .14 M M Forgings Ltd. 2000 October.15 Spicer India Ltd. 2000 November

MUKAND LTD

HOSPET STEELSPRESTIGEOUS CUSTOMER APPROVALSPRESTIGEOUS CUSTOMER APPROVALS

CUSTOMER APPROVED IN 16. Bharat Heavy Electricals Ltd(Trichy) 2001 May .17. Bharat Gears Ltd. 2001 July.18. Kalyani Forge 2001 September . 19. Gabriel India Ltd. 2001 September .20. Hi- Tech Gears 2001 October .21. Sona steering 2001 November .22. Jamuna N.H.K 2001 December .23. The Indian card clothing co. ltd. 2002 January .24. DANA Corporation 2002 April.25. CATERPILLAR INC. USA 2002 May.26. G K N Drive Shafts (I) Ltd. 2002 June.27. IBR Self Certification 2002 July. 28. Arvin Meritor 2002 August.29. RDSO Approval 2002 September.30. FM Billiton AL,South Africa 2003 February.31. Wuxi Diesel Engine Works,China 2003 April. 32. Honda Motors & Scooters (I)Ltd. 2003 October.33. Ford India Ltd, 2003 November.34. SKF Ltd 2004 April

C.ORE PRODUCTION AT SIOM

16866

198052

300806

400629456572

608540

0

100000

200000

300000

400000

500000

600000

700000

1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005

YEAR

QTY

(MT)

SUBBARAYANAHALLI MINES SUBBARAYANAHALLI MINES MUKAND LTD

HOSPET STEELS

JAMBUNATHANAHALLI MINES JAMBUNATHANAHALLI MINES MUKAND LTD

HOSPET STEELS

C.ORE PRODUCTION AT JIOM

83813

122396

50000

60000

70000

80000

90000

100000

110000

120000

130000

2003-2004 2004-2005YEAR

GEN

ERA

TIO

N (M

TS)

MUKAND LTDMINI BLAST FURNACEMINI BLAST FURNACEHOSPET STEELS

MINI BLAST FURNACE PRODUCTION

0

50000

100000

150000

200000

250000

300000

350000

400000

Year

Qty(

MT)

Qty(MT) 234076 281266 300152 281608 363855

2000-01 2001-02 2002-03 2003-04 2004-05

Percentage increase over Previous best is 21.22%

MUKAND LTDSTEEL MELTING DIVISIONSTEEL MELTING DIVISIONHOSPET STEELS

STEEL MELT SHOP PRODUCTION

0

50000

100000

150000

200000

250000

300000

350000

400000

Year

Qty(

MT)

Qty(MT) 195463 250010 279869 273894 347810

2000-01 2001-02 2002-03 2003-04 2004-05


HEATS MADE 4973 6151 6787 6547 8224

MUKAND LTDROLLING MILL DIVISIONROLLING MILL DIVISIONHOSPET STEELS

ROLLING MILL PRODUCTION

0

20000

40000

60000

80000

100000

120000

140000

160000

Year

Qty(

MT)

Qty(MT) 36472 70573 90148 124170 140000

2000-01 2001-02 2002-03 2003-04 2004-05


MUKAND LTDSTEEL DESPATCHESSTEEL DESPATCHESHOSPET STEELS

STEEL DESPATCHES

0

50000

100000

150000

200000

250000

300000

350000

400000

Year

Qty(M

T)

Qty(MT) 192151 250585 275965 268470 338826

2000-01 2001-02 2002-03 2003-04 2004-05


MUKAND LTD

HOSPET STEELSWELFARE SCHEMES

1. The Mediclaim facility is introduced in the company for the benefit of employees to meet the medical expenses.

2. Benevolent fund scheme is introduced in the company to help the employees in case of emergency.

3. Personal Group Accident Policy has been obtained wherein all employees are covered. This policy ensures for a sum of up to Rs. 3 lacs assured in case any employee succumbed to accidental injuries.

4. Gratuity Policy : All the employees are covered under the Gratuity scheme.

MUKAND LTD


5. Superannuation Policy: Employees are covered under Superannuation scheme subject to the superannuation trust rules wherein the Management will contribute on behalf of the employee10% basic of the salary every month.

6. All employees are covered under provident fund rules whereinthe employee will contribute to the fund as per the rules of theP.F. Act. Management also contribute equal amount to the fund a/c deposited with P.F. Commissioner, Bellary.

7. Canteen: All the employees & contract workers avail the canteen facility at subsidized rates.

8. Plant Medical Unit : There is periodical health check ups of employees conducted and give feed back to employees about their health.

MUKAND LTD


9. All the workmen department-wise sent for picnic with families once in a year.

10. Training at all levels is a very integral part of operations at Hospet Steels. The employees are given on-the-job technical training, training for motivation, management skills, health care and life enrichment.

11.At the end of the year, the employees are rewarded with annual increments based on their performance, attendance and discipline.

12.Every year, all workers are provided two pairs of uniform and safety gear free of cost.

MUKAND LTD

HOSPET STEELSCOMMUNITY DEVELOPMENT

SOCIAL ACTIVITIES1. Hospet Steels is supporting five schools in Ginigera and Kanakapura villages by way of furniture, fixtures, sports goods,etc., every year on 15th August. Cash prizes and trophies are given to the 1st and 2nd rank holding boy & girl in middle school as well as high school final examination. Trophies are also given to the best sportsman of the school.

2. Eye camp was conducted at Ginigera along with Rotary Club of Hospet in which 774 elderly men & women of the neighbouring villages got their eyes tested. 74 patients were operated and 240 were given spectacles free of cost.

3. Street lamps worth of Rs.1.75 lakhs were provided in the neighbouring villages.

MUKAND LTD


SOCIAL ACTIVITIES4. Rs.2.5 lakhs was donated for the land to build Primary Health

Centre at Ginigera.

5. Hospet Steels had sponsored five students of land sellers for ITI course after which they were offered jobs in the company.

6. About 108 land sellers of Kanakapura, Ginigera, Hale Kanakapura, Hosahalli, etc., were given jobs in the company apart from the compensation paid for the land.

7. Sadguru Sri Sri Ravishankar Swamiji Maha Satsang was organised at Hospet. People around Hospet, Torangallu, Koppal attended the Maha Satsang programme in which they were exposed to “The Art of Living”, Meditation and the blessings of the Guruji.

MUKAND LTD


SOCIAL ACTIVITIES8. Company Doctor is available three days in a week at the

Community centre for two hours for free check up and consultation for the residents of neighbouring villages.

9. Company has sponsored for the renovation of the Basket ball court at the Vijayanagar College Ground at Hospet.

10. The company holds cricket tournament every year in which fifteen teams participate from Hospet, Bellary, Koppal, Gadagand Hubli regions.

11.To improve the environment inside the factory premises, the company has planted more than 15,000 trees of different species which is already making a positive impact to create the green belt in the neighbourhood.

COMMUNITY DEVELOPMENT SOCIAL ACTIVITIES

MUKAND LTD

HOSPET STEELS

12. Constructed class rooms for Ginigera High School and Hosa Kanakapura primary school at a cost of Rs. 9 Lakhs. We have also constructed compound wall for Primary school at Hosa Kanakapur and Kanakapur Tanda at a cost of Rs. 3 Lakhs.

13. The company has been providing drinking water from its borewells to the neighbouring villages whenever required.

14. The company has undertaken the task of providing street lights in Jawahar Road, Koppal at a cost of Rs. 13 Lakhs.

2

Energy ManagementOrganisation Structure at

HOSPET STEEL LTD

CHIEF EXECUTIVE

EXE.VP. (ENG)

GM – (E A & P)

CORPORATE COORDINATOR - ECC

SECRETORIES

MEMBERS

Presentation Outline

• Introduction• Background on Energy Management

Initiatives• Energy Management Project• Energy Management Team• Success Factors• Lessons Learned

HOSPET STEELS LTDIntroduction

• Hospet Steels Ltd is the joint venture of Mukand Ltd & Kalyani Steels Ltd

• Located in Ginigera, Koppal, Karnataka• Largest Employer in City• 386 Acres on Campus• Units – MBF, SMS, PP, RMS, Admin Building,

SMS Office, Lab, Canteen, Colony, Utility etc.,.• 8 Years - Average Age of Unit• 792 Employees

Background

• Energy Management was the unit automation, computer system.

• FY05/06 Budget for Energy Conservation Project – Rs.50 Lakhs

Economic Review

• Approval for project Investment : Rs.50 lakhs• Approx Annual Savings : Rs.100 lakhs• Simple Payback : 5 months

Reasons To Go Campus Wide• More Shops, equipment & optimizing process• Increasing utility cost year after year• Management had confidence and know-how to

do energy conservation projects• Because of number of shops, decided to seek

help with unit audits

Audit Plan I: Four Groups

• Divided campus (HSL) into four units [Iron Making – Kalyani Steeels Ltd (KSL),Steel Melt Shop – Mukand Ltd (ML)Rolling Mill – KSLPower Plant – KSL].

• Invited Consultant (CII) to do an evaluation• Unit wise Energy Management Groups

developed, one corporate coordinator had been build up.

• Received suggestion from employees, started feasibility study for effective implementation.

CII Initial Audit Results

• Initial study took place• Proposals specified.• Overall project cost of Rs. 50 lakhs• Potential annual saving was projected by

CII – Rs.150 lakhs p.a• Decision made to buy out contract

Management Approval

• Management Approval for investing Energy conservation project - Rs.50 lakhs– Installation of VFC drives in Compressed Air system –

Rs.12 lakhs – Installation of VVVF drives – Rs.20 lakhs– Replacing Steam Ejector valves – Rs.3 lakhs– Installation of overhead pipes to arrest water leakage in

underground – Rs.15 lakhs.– Energy meter for every individual feeder – Rs.25000 – Replacing 40W bulb by T5 series – Rs.25000– Modification in Reheating Furnace air &

oil line actuators - Rs.50000

The Steam Project

• Anticipated steam saving of Rs.36 lakhs annually– Reduced soft water consumption– Reduced reheat due to control valve system– Reduced FO consumption– Heat recovery cycle– Reduced Boiler power consumption cost

The Water Project

• Anticipated water saving of ~ Rs.5 lakhs annually– Installing overhead piping to arrest water

leakage in under ground.– Closed loop cooling for water cooled air

compressors and lab equipment– Reuse of pond water for road cleaning &

gardening instead of bore well

The Electrical Project

• Anticipated electrical saving of Rs.57.25 lakhs annually– Replacing 40 W tube light by T5 - Rs.25000

& Individual switches with label.– Energy meter in every feeder to monitor energy

reading.– VVVF drives - Rs.12lakhs– VFC drive - Rs.15 lakhs– Automisation of air & line in RHF - Rs. 30lakhs

Initial Strategy

• Identify easy-to-implement projects• Go for “low hanging fruit”• In-house labour and project

management• Industry standard technology• Internal control

Team Concept

• Gather expertise from across the organization(maintenance shops, engineering, utilities, project

management)• Group discussion of unit problems leads to

new projects• Group tours/examinations of high

consumption units to uncover opportunities• Solutions address unit problems,

maintenance issues, customer complaint, as well as energy

HOSPET STEEL LTDEnergy Team

Team Composition:Shop supervisors from Operation, Electrical, Mechanical Engineer, QAD, Project Managers, Energy Management.

Energy Solutions

• Arrest leakages in air, Oxygen, water and steam lines/loops

• Use of waste heat / exhaust heats where ever possible

• Variable speed drives(slow fans/pumps for less than peak loads)

• Upgrade of VFC systems• Closed loop water systems.

Success Factors

• Team concept• Pick the big consumers• Start small, build credibility• Keep control in-house - hire labour as

needed• Involve shops and contract people• Internal Financing

Lessons Learned

• Planning• Employee relations (contact, scheduling)• Tried & true technologies• Low hanging fruit• In-house project management • Select energy efficient and quality

products.• Purchase in quantity - drive down unit

cost• Set standardized prices for each activity• Utilize your own people

H O S P E T S T E E L S L I M I T E DENERGY CONSERVATION POLICY (PROPOSED)

We are committed to minimize Energy Consumption on continual improvement basis by,

Optimizing raw material consumption and conserving power, petroleum fuels, oils, compressed air, water, steam, gases and other resources.

Adopting best available technology for energy managementTaking specific objective of energy conservation periodically through

process /technology change.Conducting periodical energy audit for continual improvementCreating awareness among employees

R.Sampath KumarJune 01, 2006 Chief Executive

hos pet steels limited

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